Judge OKs Detailed Examination of Avantair Executives

AINalerts » August 22, 2013
August 22, 2013, 3:30 PM

On Tuesday, the judge overseeing the Avantair bankruptcy case approved a motion for trustee Beth Ann Scharrer to begin examinations of Avantair CEO Steve Santo, CFO Bret Holmes, president David Haslett, associate general counsel Tom Palmiero, executive vice president Kevin McKamey and executive vice president of finance and operations Stephen Wagman “to obtain any and all documents in [their] possession related to the assets, liabilities and business operations of [Avantair].”

The six Avantair executives have been given until next Wednesday to submit to the trustee’s counsel what will ultimately be thousands of documents. The material sought includes written notes, computer files, emails (personal and company), inter- and intra-company communications, phone records (personal and company), mortgages, leases, personal bank records and individual tax returns, to note just a few.

In addition, these Avantair executives have also been ordered to “make themselves available for examination and appear before a court reporter [at the trustee’s counsel’s office in Tampa starting on September 4 at 10 a.m.] and continuing from day-to-day until conclusion, giving sworn testimony concerning the acts, conduct, business, transfers, real and personal property of the debtor [Avantair], the financial condition of the debtor, and any other matter which may affect the condition of the debtor’s estate.”

The next hearing date in the case will be on September 11, and the judge has also scheduled the initial creditors’ meeting for September 19.

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former employee
on August 23, 2013 - 8:47am

These guys had a lot of time to destroy records and hide stuff, I hope Ms. Scharrer is thorough in her search, I would look to offshore accounts if I was her ...

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Dr. Van Gelder
on August 25, 2013 - 10:26am

Offshore account in a fictitious corporate name with nominee officers => they will NEVER find it. It is very easy to hide money outside of the United States.

Not that I think the officers of Avantair have anything to hide. The business collapsed and if they were wise, they would have secured their golden parachutes long before this eventuality was known to outsiders.

If you were in their position, you would have done the same thing. This idea that they should go broke because the company went broke is naive at best.

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Kevin Flintstone
on August 23, 2013 - 10:39am

What about the Board of Directors? Their lack of oversite contributed to this mess as well.

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Jason Feldman
on August 23, 2013 - 6:22pm

I witnessed quite a bit while not only flying as a captain for Avantair, but as one of five members of the PAC (a non union pilot advisory council). We were in meetings with management, begging them to do things right, not cut corners- of the five, three were company "yes men" - and myself and one other were the "flies in the ointment" - not willing to drop important issues. As a captain I know how maintenance was operated, often refusing to fly until the planes were fixed, the company would fly pilots like me to other aircraft and find other pilots willing to fly broken planes to "help the company out". Etc etc. I would love to tell the court how I was fired because I dared to file a Workmans comp claim for my spine injury - and that they often fired for that and other issues, such as using FMLA etc etc

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